CITY MANAGER' S REPORT
ITEM 5. 1
FEBRUARY 13, 2023 REGULAR CITY COUNCIL MEETING
ITEM: PUBLIC HEARING ( PUBLISHED NOTICE) TO
CONSIDER COMMUNITY DEVELOPMENT BLOCK
GRANT ( CDBG) AND HOME INVESTMENT
PARTNERSHIP ACT ( HOME) PROGRAM ALLOCATIONS
FOR FISCAL YEAR 2023/ 2024
RECOMMENDATION: Council to Consider the Following:
1. Hold a Public Hearing; and
2. Adopt Resolution Recommending the Allocation of
the CDBG and HOME Funds for FY 2023/ 2024 for
consideration by San Joaquin County and the US
Department of Housing and Urban Development
HUD) pursuant to Budget Amendments
CEQA STATUS: This item is statutorily exempt under Article 18, Section 15273, because CEQA does not apply to the
establishment or modification of HUD funding
programs to public agencies which are to meet
community needs.
SUMMARY:
Each year the City of Lathrop (City) receives an allocation of Community Development Block Grant ( CDBG) and HOME Investment Partnership Act ( HOME) funds. Both programs are funded by the U. S. Department of Housing and Urban Development HUD), and administered by San Joaquin County ( COUNTY), under an Urban Cooperative Agreement between San Joaquin County and the cities of Escalon, Lathrop, Manteca, Ripon, and Tracy.
The County guidelines are in place to help meet the needs of the community and the requirements set forth by HUD. Important highlights of these guidelines are as follows:
Multi- entitlement agencies must apply directly to San Joaquin County for both County and City funding.
The minimum award for public service grant requests should be at least 5, 000. 00, unless prior approval received from San Joaquin County.
Cities will be recommending the local allocation of funds for final approval by the San Joaquin County Board of Supervisors and HUD.
For fiscal year 2023/ 2024, the City of Lathrop anticipates an allocation of $ 92, 487 in CDBG funds and $ 33, 624 in HOME funds. Final allocation numbers are determined upon Federal Budget approvals, which will be proportionally increased or decreased from the estimated funding levels to match the actual allocation amounts.
CITY MANAGER' S REPORT Page 2
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2023/ 2024
No more than fifteen percent ( 15%) of the allocated CDBG funds may be designated toward Public Service organizations with the remaining eighty- five percent ( 85%) designated toward Public/ Capital Facility projects. HOME funds may be allocated to eligible program( s) administered by the County.
City Council must conduct a public hearing to consider funding requests from eligible applicants, prior to finalizing recommendations of local CDBG and HOME funding allocations. Staff published a legal advertisement on December 20, 2022 to promote the availability of CDBG and HOME funds and to solicit eligible applicants. A second legal advertisement was published on February 3, 2023 to announce the public hearing date to consider CDBG and HOME funding allocations for FY 2023/ 2024.
Multi- entitlement agencies serve residents of multiple cities throughout the County, therefore these agencies are required to submit one application to San Joaquin County for individual local agency funding requests.
There were four ( 4) multi- entitlement agency applications submitted for CDBG Public Service' s
funding, one ( 1) application submitted directly to the City for consideration of a local Public Service grant, one ( 1) application received for a Public Facilities grants, and zero ( 0) applications received for HOME funds.
The three- step process for allocating funds to identified local activities is referenced below:
STEP 1. Allocate funding for the CDBG Public Service Organizations.
STEP 2. Allocate funding for the CDBG Public/ Capital Facility Projects.
STEP 3. Allocate HOME funds to an eligible program administered by the County.
Staff recommends that the City Council consider the information provided at the public hearing, staff' s presentation, and Lathrop' s Scoring Committee' s proposed funding allocations for CDBG' s public service grants, public facility grants, and the HOME funds for fiscal year 2023/ 2024. City Council maintains sole discretion to accept staff's recommendation or propose recommended funding allocations toward eligible applicant projects or services they deem in the best interest to meet community and resident needs.
BACKGROUND:
The City of Lathrop, in accordance with the Urban Cooperative Agreement with San Joaquin County, will make recommendations to allocate the anticipated amount of CDBG funds to Public Service organization( s), Public/ Capital Facility project( s), and HOME funds as follows:
CITY MANAGER' S REPORT Page 3
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2023/ 2024
CDBG
Public Service Awards ( 15%): 13, 873
Public/ Capital Facility Projects ( 85%): 78 614
Total anticipated CDBG Allocation: 2 4 7
HOME Funds
Total anticipated HOME Funds 33 624
STEP 1: Allocate funds to Public Service Organizations
Multi- Entitlement Agencies:
Multi- entitlement agency applicants include San Joaquin County Department of Aging, Emergency Food Bank of Stockton/ San Joaquin, San Joaquin Fair Housing, and Give Every Child a Chance ( GECAC). Each of these organizations provide services within multiple cities throughout San Joaquin County, and have applied directly to the County through the one application process to request funding from the County and Cities for which they provide services.
The following summary describes the services provided to Lathrop residents by each of the multi- entitlement agency applicants and the amount requested by each organization:
San Joaauin Fair Housinq 1, 250
The San Joaquin Fair Housing Board is designed to further fair housing in San Joaquin County. They achieve this by educating tenants and owners on all the Federal and State Fair housing laws accomplished through direct outreach, education, mediation and virtual workshops. It is important to note that this is a HUD mandated program, which requires each jurisdiction to provide their proportionate share of the anticipated expenditures by San Joaquin Fair Housing for the fiscal year. In other words, the 1, 250 is a requirement. The program expects to benefit approximately 2, 743 Lathrop residents.
Give Every Child a Chance — Before/ After School Programs 5, 800 Give Every Child a Chance ( GECAC) provides free to minimal cost programs to youth in San Joaquin County. Free mentor/ tutoring to students in K- 12th grade is provided through programs called TEACH, ASAP, and BHS. In addition, bi- monthly food, activity kit distributions, and a Summer Supplemental Program ( Day Camp) are provided. The programs expect to benefit approximately 445 youth in Lathrop.
CITY MANAGER' S REPORT Page 4
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2023/ 2024
Emergency Food Bank — Mobile Farmer' s Market 1, 919
The Emergency Food Bank of Stockton/ San ) oaquin is requesting funding for its Mobile Farmers Market" program, which visits 70 sites throughout the cities and county. Each site is visited monthly, with a goal of providing nutrition education and increased access to fresh produce, to promote healthy lifestyles and decrease the prevalence of disease/ chronic health conditions and food insecurities to the most vulnerable populations.
There are three Mobile Farmer' s Market sites serving Lathrop for one day each month:
Joseph Widmer Elementary, Lathrop Elementary, and Grace Community Church. The program expects to serve 989 residents of Lathrop.
SJC De artment of Aging — Meals on Wheels 1, 000
The San Joaquin County Human Services Agency' s Department of Aging & Community Services is requesting funding for its Home Delivered Meals Program Meals on Wheels", which delivers five nutritious meals once a week to homebound seniors who lack transportation and have little or no social support. The program objective is to promote better health through improved nutrition. The program expects to benefit seven ( 7) senior residents of Lathrop.
Local Organizations:
Local organizations that serve and operate within specific jurisdictions are encouraged to apply directly to the Cities for CDBG grant funding. For FY 2023- 24, the City received one local organization application.
The following summary describes the services provided by the applicant( s) to Lathrop residents and the amount of funding requested:
Citv of Lathrop ( Parks & Recreation Denartment) 5, 000 The City of Lathrop' s Parks & Recreation Department ( PRD) offers an Activity Assistance Program designed to provide financial assistance to eligible low- income families and individuals who wish to participate in recreation services and activities.
PRD services and activities may include before and after school programs, day camps, sports programs, and classes. Eligible individuals may use up to $ 250 annually, but only 50% of the fees may be covered through the Activity Assistance Program; families must pay the remaining percentage. The program expects to benefit 25 Lathrop residents.
The Lathrop Ranking and Scoring Committee reviewed the applications and recommends allotment to each qualified public service organization as follows:
CITY MANAGER' S REPORT Page 5
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2023/ 2024
PUBLIC SERVICE ORGANIZATIONS ALLOTMENT SUMMARY
Requested Recommended
Organization Amounts for Allotment for
FY 23/ 24 FY 23/ 24
San 7oaquin Fair Housing 1, 250 1, 250. 00
Give Every Child a Chance ( GECAC) 5, 800 5, 800. 00
Emergency Food Bank ( Mobile Farmers Market) 1, 919 1, 919. 00 S] C Dept of Aging, Meals on Wheels 1, 000 1, 000. 00
Lathrop Activity Assistance Program 5, 000 3, 904. 00
TOTAL FUNDS 14, 969. 00 13, 873. 00
STEP 2: Allocate Funds for Public/ Capital Facility Project( s) The City of Lathrop anticipates $ 78, 614 of CDBG funds to be available for eligible public/ capital facility projects.
One application was received by the City' s Public Works Department for funding of ADA accessibility improvements related to City facilities including the Generation Center, Lathrop Police Station, Community Center, and the Senior Center. A summary of the project and the amount requested are referenced below:
Lathrop Public Facilities — ADA Accessibility Improvements 92, 487 The City of Lathrop was awarded CDBG grant funding in FY 2021/ 22 for $ 82, 300. 61 and FY 2022/ 23 for $78, 614 to complete City Hall upgrades and improvements needed to comply with the requirements of the Americans with Disabilities Act ( ADA).
The total cost of the project was estimated at $ 212, 300, which included ADA door upgrades, an ADA ramp and other associated modifications in the Council Chambers, an ADA Kiosk in City Hall lobby, additional strike edge clearance, accessible surfacing to City Hall exterior Bulletin Board, and replacement of broadcasting equipment to enhance audio/ video.
The City of Lathrop is applying for FY 2023/ 24 CDBG grant funding to support the purchase and construction of ADA upgrades and improvements to various public facilities including the Generation Center, Lathrop Police Station, Community Center, and the Senior Center. Improvements will include, but are not limited to, automated sliding doors at all public entrances to each building. In accordance with the ADA Self- Evaluation and Transition Plan, City staff continues to work towards the removal of architectural barriers in public facilities and pathways. The upgrades and improvements will allow safe and improved access for people with disabilities to engage in services, programs, activities, and meetings conducted at these locations.
CITY MANAGER' S REPORT Page 6
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2023/ 2024
STEP 3: Allocate Home Funds
The estimated HOME fund allocation for FY 2023- 24 is $ 33, 624. The City of Lathrop participates in two eligible HOME Loan programs- the Homebuyer pown- Payment Assistance ( GAP) and the Lathrop Housing Rehabilitation Program. Both programs provide low- interest loans for qualified low- income households. The City advertises these programs through the City website, Channel 97, Newsletters, and through flyers distributed at City Hall, Community Center, Senior Center and the library.
San Joaquin County administers the HOME fund applications, contracts, and program disbursements. According to County records, the current balance for the Lathrop Housing Rehabilitation program is $ 113, 762, which includes allocations from FY' s 2019/ 2020, 2020/ 2021, 2021/ 2022, and 2022/ 2023. The GAP program has a balance of $ 10, 000.
As of January 31, 2023, the County reported that the Lathrop Housing Rehabilitation program has assisted one ( 1) resident with several more clients on the waiting list.
The Homebuyer pown Payment Assistance Program ( GAP) has not been utilized for the past nine ( 9) years. Due to the rising cost of housing and a high- income ratio requirement to purchase a house, residents of San Joaquin County find it difficult to qualify for GAP, which requires the applicant to qualify as low- income.
Staff recommends that $ 10, 000 of the HOME Funds be allocated toward the GAP program with the remaining balance of$ 23, 624 allocated toward the Lathrop Housing Rehabilitation Loan Program.
RECOMMENDATION:
Staff recommends that the City Council consider the information given at the public hearing and during the staff presentation to make a funding recommendation to allocate the 2023/ 2024 fiscal year CDBG and HOME program funds pursuant to budget amendments as follows:
Step 1: Allocate CDBG funds to Public Service Organizations ($ 13, 873. 00) as indicated on the Lathrop Scoring and Ranking Committee Recommendations Attachment 2).
Step 2: Allocate CDBG Public/ Capital Facility funds ($ 78, 614. 00) to the City of Lathrop for ADA Accessibility Improvements at the Generation Center, Lathrop Police Station, Community Center, and the Senior Center.
Step 3: Allocate HOME funds ($ 33, 624. 00) to the GAP program and Housing Rehabilitation Programs administered by the County as indicated on the Lathrop Scoring & Ranking Committee Recommendations ( Attachment 2).
CITY MANAGER' S REPORT Page 7
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2023/ 2024
FISCAL IMPACT:
Staff time to review the applications, prepare this report, presentation and monitor and manage this program.
The County' s disbursement process requires the City to set up a separate account( s) to accommodate the CDBG reimbursement program. Because the applicant( s) have been awarded CDBG grants in the past, all necessary accounts are in place and funded according to this requirement. The only exception will be an increase in the revenue account to accommodate the Public Facilities award for City Facilities ADA Accessibility Improvements Project through a budget adjustment for CIP GG 23- 14.
Staff is requesting the following budget amendments to accommodate the CDBG FY 2023/ 2024 allocations for Public Service and Public Facility Grants:
Increase Revenues
2650- 1130- 333- 01- 02 Intergov. Federal - CDBG CC 78, 614 2700- 3001- 333- 01- 02 Intergov. Federal - CDBG CC 3, 904 Increase Transfers
1010- 9900- 393- 00- 00 CDBG Transfer In - Public Agency 3, 904 2700- 9900- 99- 90- 10 CDBG Transfer Out - Public Agency 3, 904 2650- 9900- 990- 90- 10 CDBG Fund Transfer Out - Public Agency $ 78, 614 3010- 9900- 393- 00- 00 Increase Transfer CIP GG 23- 14 78, 614 Increase Expenses
3010- 8000- 420- 12- 00 Increase Expense CIP GG 23- 14 78, 614 GOALS ADVANCED BY THIS AGENDA:
The proposed Resolution promotes Public Safetv by providing funding for those in need of assistance and support.
ATTACH M ENTS:
A. Resolution Recommending the Allocation of the Community Development Block Grant and Home Investment Program Funds for FY 2023/ 2024.
FY 2023/ 2024 - CDBG/ HOME Grant Applications, Scoring and Ranking Committee Recommendations
CITY MANAGER' S REPORT Page 8
FEBRUARY 13, 2023 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2023/ 2024
APPROVALS:
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Shelley Burcha Date
Economic Development Administrator
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Cari Ja s Date
Director f inance
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Salvador Navarrete Date
City Attorney
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St n J. Salvatore Date
City Manager
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
RECOMMENDING THE ALLOCATION OF THE COMMUNITY DEVELOPMENT
BLOCK GRANT AND HOME INVESTMENT PROGRAM FUNDS FOR FISCAL YEAR 2023/ 2024
WHEREAS, the City anticipates it will receive an estimated allocation of 92, 487 for Community Development Block Grant ( CDBG) and $ 33, 624 for the HOME Investment Program ( HOME) for Fiscal Year ( FY) 2023- 2024; and WHEREAS, the City of Lathrop has properly published a 30- day public notice of availability of funds for the programs in accordance with HUD regulations; and WHEREAS, the City Council has determined in accordance with the California Environmental Quality Act, Article 18, Section 15273, that this item is statutorily exempt because CEQA does not apply to the establishment or modification of HUD funding programs to public agencies which are to meet community needs; and WHEREAS, the City Council conducted a duly noticed public hearing on February 13, 2023 to consider applications for CDBG and HOME Funds for FY 2023- 2024, has considered the information given at the public hearing and during the staff presentation, and determines that the recommended allocations represent the community needs in Lathrop; and
WHEREAS, the recipients of CDBG funding are required to enter into an agreement with the City to ensure that funds are spent in accordance with HUD regulations.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop, does hereby recommend the following public service agencies and allocated amounts for funding in the Fiscal Year 2023/ 2024 for the CDBG program:
Public Service Or anizations Allocations
San Joa uin Fair Housin 1, 250. 00
Give Ever Child a Chance GECAC 5, 800. 00
Emer enc Food Bank of Stockton/ San Joa uin 1, 919. 00
SJC De t. of A in Meals on Wheel 1, 000. 00
Lathro Activit Assistance Pro ram 3, 904. 00
Total Allocation ( 15% of $ 92, 487) 13, 873. 00
BE IT FURTHER RESOLVED that the City does hereby recommend allocating 78, 614 of the Public/ Capital Facility funds to the City of Lathrop, Public Facilities ADA Accessibility Improvement projects CIP GG 23- 14; and BE IT FURTHER RESOLVED that the City does hereby recommend allocating $ 23, 624 of the HOME Program funds to the Lathrop Housing Rehabilitation Loan Program and $ 10, 000. 00 to the GAP Loan Program for down payment assistance.
Resolution No. 23-
BE IT FURTHER RESOLVED that the City Council authorizes CDBG and HOME fund allocations pursuant to the following budget amendments for FY 2023/ 2024.
Increase Revenues
2650- 1130- 333- 01- 02 Intergov. Federal - CDBG CC 78, 614 2700- 3001- 333- 01- 02 Intergov. Federal - CDBG CC 3, 904 Increase Transfers
1010- 9900- 393- 00- 00 CDBG Transfer In - Public Agency 3, 904 2700- 9900- 99- 90- 10 CDBG Transfer Out - Public Agency 3, 904 2650- 9900- 990- 90- 10 CDBG Fund Transfer Out - Public Agency $ 78, 614 3010- 9900- 393- 00- 00 Increase Transfer CIP GG 23- 14 78, 614 Increase Expenses
3010- 8000- 420- 12- 00 Increase Expense CIP GG 23- 14 78, 614 Resolution No. 23-
PASSED AND ADOPTED this 13th day of February 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
SONNY DHALIWAL, MAYOR
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Resolution No. 23-
ATTACHMENT B
FY 2023/ 2024- CDBG/ HOME GRANT APPLICATIONS
SCORING AND RANKING COMMITTEE RECOMMENDATIONS
A. PUBLIC FACI. LITY APPLICATIONS FUNDING
AVAILABLE FUNDING 78, 614. 00
APPLICANT PROGRAM REQUEST RECOMMENDATION
1. City of Lathrop( PW) ADA Improvements 92, 487. 00 78, 614. 00 B. PUBLIC SERVICE APPLICATIONS FUNDING
AVAILABLE FUNDING 13, 873. 00
APPLICANT PROGRAM REQUEST RECOMMENDATION
1. City of Lathrop ( PRD) Activity Assistance Program 5, 000. 00 3, 904.00 Multi- City Agencies
2. Emergency Food Bank of Mobile Farmers Market 1, 500. 00 1, 919. 00 Stockton/ San Joaquin
3. San Joaquin Fair Housingl HUD Mandated Services 1, 250. 00 1, 250. 00
4. SJC Dept. of Aging Meals on Wheels 1, 000. 00 1, 000. 00
5. GECAC After School Program 5, 800. 00 5, 800. 00
TOTAL FUNDING REQUEST $ 14, 250. 00 13, 873. 00
C. HOME FUNDS
AVAILABLE FUNDING 33, 624.00
PROGRAM BALANCE RECOMMENDATION
GAP PROGRAM— DOWNPAYMENT ASSISTANCE 10,000. 00 10, 000. 00 HOUSING REHABILITATION PROGRAM 113, 762. 00 23, 624.00
NOTES:
A) Public Facility Grant funding is the total CDBG allocation less 15% for Public Services. CDBG Allocation for FY 2023/ 2024 based on FY 2022/ 2023 final allocation numbers of$ 92, 487. 00.
B) Awards for Public Service Applications submitted directly to the City must be a minimum of$ 5, 000. 00, unless prior approval is received by San Joaquin County. Multi- County agencies who have applied through the County may be awarded less than the $ 5, 000 minimum and recommendations are up to the discretion of the City Council.
C) HOME funds have been awarded toward the Housing Rehabilitation Program since 2018. There is a total of 113, 762 remaining in Lathrop' s program. During 20Z2, one Lathrop resident received a housing rehabilitation loan and several more are on the waiting list. The County submits awards based on a first- come, first- serve basis for all applications received throughout San loaquin County.
GAP Program — Downpayment Assistance is rarely used in the County due to the high price of homes and households not able to meet the income qualification to purchase a home. 1 HUD mandated program, which requires each jurisdiction to provide their proportionate share of the anticipated expenditures by San Joaquin Fair Housing for the fiscal year.